MBD Forms Explained: Municipal Bid Documents for Local Government Tenders

MBD Forms vs SBD Forms: Key Differences

MBD and SBD forms are functionally identical in purpose and structure. The key differences are: MBD forms reference the MFMA (Municipal Finance Management Act, Act 56 of 2003) instead of the PFMA, they reference municipal SCM regulations instead of Treasury regulations, and they may include municipality-specific provisions.

Section 112 of the MFMA governs municipal procurement policy, requiring municipalities to have a fair, equitable, transparent, competitive, and cost-effective supply chain management policy. MBD forms implement these principles in the procurement process.

MBD1: Invitation to Bid

MBD1 is the municipal equivalent of SBD1 — the formal invitation and bid acceptance form. Complete your company details, CSD number, and sign the declaration. Ensure the authorised signatory is a director or duly authorised representative.

MBD2: Tax Matters

MBD2 requires your SARS tax compliance details. Most municipalities now verify tax compliance electronically via the TCS PIN system. Provide your Income Tax reference number and TCS PIN. Municipalities are increasingly strict about tax compliance — non-compliance is an immediate disqualification in most cases.

MBD3.1 and MBD3.2: Pricing Schedules

Functionally identical to SBD3.1 and SBD3.2. MBD3.1 is for goods, MBD3.2 for services. Complete all line items, include VAT treatment clearly, and ensure your totals are arithmetically correct.

MBD4: Declaration of Interest

MBD4 requires disclosure of any interest that councillors, municipal officials, or their family members have in your company. Section 117 of the MFMA and the Municipal Systems Act prohibit councillors from having a direct or indirect financial interest in municipal contracts. Undisclosed relationships are a criminal offence.

MBD6.1 and MBD6.2: Preference Points Claim

MBD6.1 and MBD6.2 function identically to SBD6.1 and SBD6.2 for claiming BBBEE preference points under the PPPFA. Attach your current BBBEE certificate. Municipalities apply the same 80/20 and 90/10 systems as national departments.

MBD7, MBD8, MBD9: Contract, Past Practices, Anti-Collusion

MBD7 (contract form), MBD8 (past SCM practices), and MBD9 (anti-collusion certificate) mirror SBD7, SBD8, and SBD9 exactly in purpose and effect. The same cautions apply: sign only if the declarations are true and accurate, and ensure all directors sign where required.

Municipality-Specific Additional Requirements

Many municipalities add their own forms and requirements on top of the standard MBD forms. Common additions include:

• Local economic development declarations (preference for local businesses within the municipality)
• Proof of business address within a specific district
• Municipal rates account (proof that the business is not in arrears with municipal rates)
• Letter of good standing from the municipality
• Additional disclosure requirements for entities tendering in sectors with prior irregular conduct
• Proof of compliance with municipal bylaws relevant to the sector

Frequently Asked Questions

Related Guides

• SBD Forms for National Tenders
• Declaration Forms Guide
• DPWI Tenders Guide